Can $80 million help GTAT escape bankruptcy?

According to foreign media reports, financiers have an $80 million plan to find a way out of bankruptcy for former Apple partner GT Advanced Technologies. The proposal was laid out in a court filing this week. The proposal calls for lenders to provide GT with $60 million in new borrowing and $20 million worth of preferred stock early next year. Currently, GT has about $50 million in bankruptcy loans to repay, plus intermediate fees. Ownership of the company will then be transferred to creditors.

Earlier last month, Apple and GT Advanced reached an agreement on $439 million in outstanding debt. In order to repay this debt, GT has planned to auction off the sapphire production equipment previously purchased for this transaction.

According to earlier court documents, GTAT will need to complete the auction before November 23. It's unclear whether the company ultimately met its goal, but even if it didn't, the agreement also provided a deadline of the 31st of this month.

It is reported that in the initial supplier agreement, GTAT spent a total of US$900 million to build a sapphire production plant in Mesa, Arizona, of which US$439 million was provided by Apple. Originally, this company was going to produce scratch-resistant sapphire for Apple's TouchID fingerprint sensor, iPhone camera coverage, and high-end Apple Watch surface. However, it eventually had to face bankruptcy because it could not meet Apple's production requirements.

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